Japan’s JFE Steel Corp is in talks to buy a stake in the metallurgical coal business of Canada’s Teck Resources, two people aware of the development toldMajor steelmakers are seeking to diversify their supplies of coking coal due to sanctions on Russia, one of the leading producers.
Teck said it does not comment on speculation and referred to its earlier statement that the company is engaging with various counterparties regarding the steelmaking coal business. Japan’s Nippon Steel has previously said it was looking to buy a 10% stake in Teck’s coal business for C$1.15 billion, valuing the overall business at about C$11.5 billion, with an option of increasing its stake to 17.5%.
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